Apparently, traders didn’t like the PMI data from the Eurozone. The main pair suffered, slipping to its lowest levels in 2018. Buyers are still fighting for the support, which already worked two days ago. This could be a great place for a double bottom formation but for a proper buy signal, we will have to wait a bit more.
The drop here is not only the influence of the weaker EUR, but also the stronger USD. Another instrument where it can be seen is the AUDUSD, where the price is going down; weakened by the false breakout of the neckline of the iH&S formation. As long as we are above the orange area, we are relatively safe, but buyers need to be extra careful now.
GBPJPY has dropped like a rock and is now reaching the ultimate selling place. Once the price breaks through the combination of important long-term supports, sellers will be able to claim a bearish victory, which could bring them thousands of pips in the next few weeks.